General form of registration statement for all companies including face-amount certificate companies

Stock Options

v2.4.0.6
Stock Options
 6 Months Ended 12 Months Ended
Apr. 30, 2012
Oct. 31, 2011
Stock Options [Text Block]
10.

Stock Options

   
 

On November 15, 2011, the Company granted 40,000 stock options to consultants of the Company with an exercise price of $0.30 per share, vested immediately and expiring on November 15, 2016.

   
 

For the six months ended April 30, 2012, the Company recorded a total of $9,589 (2011: $Nil) for stock based compensation expenses. This is related to a non-exclusive agreement that the Company entered into with a third party IR services company, Trident Financial Corp., to assist the Company with the development and implementation of a public and investor relations and communications program, and provide ongoing assistance to the Company regarding the development and enhancement of the Company’s public and market image.

   
 

The fair value of each option granted has been estimated as of the date of the grant using the Black-Scholes option pricing model with the following assumptions:

    Six months ended April 30, 2012
  Expected volatility 129.14%
  Risk-free interest rate 2.75%
  Expected life 5 years
  Dividend yield 0.0%

A summary of weighted average fair value of stock options granted during the six months ended April 30, 2012 is as follows:

      Weighted     Weighted  
      Average     Average  
      Exercise     Fair  
  Period ended April 30, 2012   Price     Value  
  Exercise price is greater than market price at grant date: $ 0.30   $ 0.24  

A summary of the stock options for the six months ended April 30, 2012 is presented below:

      Options Outstanding  
            Weighted Average  
      Number of Shares     Exercise Price  
  Balance, October 31, 2011   1,700,000   $ 0.26  
  Granted   40,000     0.30  
  Balance, April 30, 2012   1,740,000   $ 0.26  

The Company has the following options outstanding and exercisable:

  April 30, 2012         Options outstanding     Options exercisable  
                                 
            Weighted     Weighted           Weighted  
            average     Average           Average  
  Range of   Number     remaining     Exercise     Number     Exercise  
  Exercise prices   of shares     contractual life     Price     of shares     Price  
  $0.20   150,000     2.72 years   $ 0.20     150,000   $ 0.20  
  $0.20   850,000     3.29 years   $ 0.20     850,000   $ 0.20  
  $0.35   700,000     4.20ye ars   $ 0.35     700,000   $ 0.35  
  $0.30   40,000     4.24ye ars   $ 0.30     40,000   $ 0.30  
                                 
  Total   1,740,000     3.41 years   $ 0.26     1,740,000   $ 0.26  
9.

Stock Options

     
 

On January 20, 2010, the Company approved a new 2010 Equity Compensation plan and granted 975,000 stock options to directors and consultants of the Company with an exercise prices of $0.20, vested immediately and expiring on January 20, 2015.

     
 

On August 16, 2010, the Company granted 150,000 stock options to a consultant of the Company with an exercise price of $0.20, vested 75,000 immediately and 75,000 on August 16, 2011 and expiring on August 16, 2015.

On July 11, 2011, the Company granted 700,000 stock options to directors and officers of the Company with an exercise price of $0.35 per share, vested immediately and expiring on July 11, 2016.

For the year ended October 31, 2011, the Company recorded a total of $179,789 (2010: $161,366) for stock based compensation expenses.

The fair value of each option granted has been estimated as of the date of the grant using the Black-Scholes option pricing model with the following assumptions:

  Year ended October 31, 2011 Year ended October 31, 2010
Expected volatility 131.14% 145.85%
Risk-free interest rate 2.75% 2.46%
Expected life 5 years 5 years
Dividend yield 0.0% 0.00%

A summary of weighted average fair value of stock options granted during the year ended October 31, 2011 is as follows:

  Weighted Weighted
  Average Average
  Exercise Fair
Period ended October 31, 2011 Price Value
Exercise price is greater than market price at grant date: $ 0.35 $ 0.26
     
  Weighted Weighted
  Average Average
  Exercise Fair
Year ended October 31, 2010 Price Value
Exercise price is greater than market price at grant date: $ 0.20 $ 0.14

A summary of the stock options for the year ended October 31, 2011 is presented below:

    Options Outstanding  
          Weighted Average  
    Number of Shares     Exercise Price  
Balance, October 31, 2010   1,525,000   $  0.20  
Granted   700,000     0.35  
Exercised   (225,000 )   0.20  
Expired   (300,000 )   0.20  
A. Balance, October 31, 2011   1,700,000   $  0.26  

The Company has the following options outstanding and exercisable:

October 31, 2011         Options outstanding    

Options exercisable

 
                               
          Weighted     Weighted           Weighted  
          average     Average           Average  
Range of   Number     remaining     Exercise     Number     Exercise  
Exercise prices   of shares     contractual life     Price     of shares     Price  
$0.20   150,000     3.80 years   $ 0.20     150,000   $ 0.20  
$0.20   850,000     3.23 years   $ 0.20     850,000   $ 0.20  
$0.25   700,000     4.70 years   $ 0.35     700,000   $ 0.35  
Total   1,700,000     3.87 years   $ 0.26     1,700,000   $ 0.26  

 

October 31, 2010         Options outstanding    

Options exercisable

 
                               
          Weighted     Weighted           Weighted  
          average     Average           Average  
Range of   Number     remaining     Exercise     Number     Exercise  
Exercise prices   of shares     contractual life     Price     of shares     Price  
$0.20   150,000     4.79 years   $ 0.20     75,000   $ 0.20  
$0.20   975,000     4.22 years   $ 0.20     975,000   $ 0.20  
$0.20   75,000     0.72 years   $ 0.20     75,000   $ 0.20  
$0.20   325,000     0.64 years   $ 0.20     325,000   $ 0.20  
Total   1,525,000     3.34 years   $ 0.20     1,450,000   $ 0.20